Steve Georganas (Adelaide, Australian Labor Party) Share this | Link to this | Hansard source

We know that, currently, people are doing it tough out there, and we know that one of the hardest things that they face is prices at supermarkets. When you're on a very low wage or a pension, every single cent counts. Every time there's an increase at the supermarket, the person that feels it the most is that low-income earner or that pensioner. That's why I'm very pleased that the current government is doing all that it can to alleviate the cost-of-living problems. One of those areas is looking at the supermarkets and how they conduct themselves and how their way of selling is affecting supermarket prices. The government is going to provide $30 million in a package of additional funding for the ACCC to crack down on misleading pricing and practices and, very importantly, poor conduct from different outlets.

We need to do more in this area. We need to ensure that the Australian consumer is getting a fair go when they walk into the supermarket. During the ACCC inquiry, we saw examples all over TV where, for example, some of these big supermarket outlets—there are only two of them, really, the two that dominate the market here in Australia—would have specials and sales with bells and whistles, only to show that those sales and special prices were actually higher than the normal prices. That is absolute misconduct on behalf of supermarkets, conning the Australian public, and it's not on. This is where the ACCC has to crack down on them and ensure that they're doing the right thing by Australia.

We know that every piece of retail that's sold in this country, across the nation, is out of two outlets. When you include not just the supermarkets but the servos and liquor stores that are owned by these particular conglomerates, around 70 per cent of retail being sold in this nation comes from those two. In no other country around the world would they be allowed to operate. They would be broken down and sold off, and rightly so. It's unfortunate that we don't have laws in this country that will actually do that. In the United States, at over 40 per cent the government will step in and break you up and make you divest. The reality is that we've allowed these oligarchs to get away with it for so long.

I'm pleased that the government is now doing something. There's going to be a crackdown from the ACCC to investigate the allegations to ensure that the Australian consumer is getting a fair go, especially in an economic climate like the current economic climate, where every cent counts, especially for those low-income workers, for our pensioners and for people that are doing it really tough. These reforms will make the system faster, stronger, simpler and more targeted and more transparent. It's also about more competition for consumers and more certainty and clarity for businesses. Under this new system, we'll set clear thresholds to determine whether a merger needs ACCC approval, and there are also powers to ensure all the high-risk mergers are looked at.

We know that currently, when you look at the price increases and what's been happening, a survey of 2,500 households in July 2024 showed that Australian households spend around $168 per week on groceries. This equates to almost $728 per month or $8,700 per year. The average weekly spending for larger households of five or more people is roughly $232, with the majority of this spent on staple or everyday food items. When we talk about staple and everyday food items, these are necessities. This isn't a luxury; this is about putting food on the table for your kids and your family and ensuring that you have the nutrition that's needed. So we need to ensure that there's a price monitoring that would look at prices continuously and that, where we see something that perhaps doesn't seem quite right, the ACCC has the power to go in, investigate and take action to ensure that we're able to keep prices down and to ensure that there's fair competition and that these big companies are doing the right thing by the consumer. The biggest increase in prices of food items recorded was for oil and fats, which were up 50 per cent over the last few years. Fruit and vegetables were up over 30 per cent. (Time expired)

Helen Haines (Indi, Independent) Share this | Link to this | Hansard source

Australians have been taken for a ride by the major supermarkets and, frankly, it's no wonder they are among Australia's least trusted companies. Coles and Woolworths, who collectively control two-thirds of the grocery sector, are among the most profitable supermarkets in the world. While families have been struggling to balance the household budget, both Coles and Woolies made more than $1 billion in after-tax profits in the previous financial year. Just swallow that fact. To rub salt into the wound, it seems like not a day passes without another story in the media about fake discounts, price gouging or mistreatment of small-scale suppliers and farmers.

For example, in my electorate of Indi in north-east Victoria, fruitgrowers are a key part of the local agricultural sector. However, Fruit Growers Victoria have told government inquiries of the significant market failure in the provision of fresh fruit to the Australian retail sector. They blame this, in large part, on the enormous power imbalance of a sector dominated by guess who? Coles and Woolworths, the duopoly. They worry for the future of Australian grown fruit. Sadly, this is a common view across most agricultural sectors in this country.

For most Australians, the equation is simple. Farmers are getting paid less and consumers are paying more. It's not hard to understand that that's not right. It's why Australians have had enough of the big supermarket duopoly. That's why I've supported the actions to date to rein in the supermarkets, as well as other big businesses treating regular Australians with contempt. I support inquiries into supermarket price gouging and I commend efforts to crack down on dodgy specials and fake discounts.

I recognise the vital role of the competition regulator in holding Coles and Woolworths accountable and protecting Australian consumers. I also support plans to make the Food and Grocery Code of Conduct mandatory. I want to see stronger protections, including whistleblower protections, for suppliers who call out the big supermarkets on their bad behaviour. I also support calls for an economy-wide divestiture power that would give the competition regulator the power to break up big businesses when it can prove regular Australians are getting a dud deal. Corporate interest should never be prioritised over consumer interest in a sector as important as fundamental food and groceries.

However, the major parties are not blameless here. To me, their bold words ring hollow and come far too late. We only find ourselves in this situation because neither the Labor Party nor the Liberal Party and National Party have been brave enough to take on the supermarket duopoly. One duopoly in this country seems to be protecting another. For decades, they've sat by and allowed the major supermarkets to accumulate power and influence and, now, in many regional communities, a Woolies or a Coles is the only game in town.

What I also can't stand is that the supermarket duopoly use their power and influence to squeeze Aussie farmers and agricultural communities. For most primary producers, whether in my electorate of Indi or right across regional Australia, it's getting harder and harder to do business without being dependent on and beholden to the market dominance of the major supermarkets. Yet for years, as political tides have ebbed and flowed, little has been done to fundamentally reform the supermarket sector. That we find ourselves in the situation we're in today is not really a surprise to those who have been watching. It was only once the conduct of the supermarkets became so egregious and so obvious that it could no longer be ignored that both major parties decided to get tough on the supermarkets. So we cannot let this moment go to waste and we must reform the grocery sector to ensure consumers and farmers are put before corporate profits.

As a regional independent, I will always put the interests of my community first, whether that be a family trying to put affordable food on the table or the multigenerational farming family underpinning the food security of our nation. I will always push for a fairer food system in this country where farmers and all our incredible primary producers are rewarded for their hard work, where agricultural communities are supported, not undermined. I've always pushed for a grocery sector where households—all households—can put food on the table that is healthy and affordable.

Dan Repacholi (Hunter, Australian Labor Party) Share this | Link to this | Hansard source

I rise in support of this motion from my good friend the member for Hawke. The No.1 priority for the Albanese Labor government is cost-of-living relief. Supermarkets are a place where Australians have been feeling the squeeze every week. Supermarkets are seriously greedy. They are squeezing at both ends of the production line—squeezing consumers at the till and squeezing suppliers at the farm gate and at the factory. Enough is enough. The supermarket squeeze has gone on for too long.

In the Hunter, we are proud of our agricultural produce and our hardworking families. People across our electorate are feeling the supermarket squeeze as both consumers and producers. Families in our electorate shouldn't have to worry about whether they can afford the groceries they need. Our local farmers and other suppliers shouldn't be screwed over by unfair market practices that diminish their livelihoods.

Firstly, let's talk about the consumers. A trip down to the shop shouldn't be a stressful experience worrying about how much things are going to cost. We are taking action to help consumers get lower prices on their groceries. It's about fairness and transparency and about ensuring that every Australian has access to affordable supermarket goods so they can provide for themselves and for their family without being ripped off at the check-out. Our approach to taking on the supermarkets is based on issues that the ACCC has identified—take land banking, where Coles and Woolies hold on to land to stop smaller supermarkets from getting a foothold. They lock out smaller retailers, which strangles competition. It's a bad deal for consumers and a bad deal for suppliers. It needs to stop.

There's also shrinkflation—which is something I don't usually see too much of in myself! It's where a product gets smaller but the price remains the same or even increases. This juices up profits of big companies at the expense of consumers. There are few things worse than going to the shops, buying a product that you love and finding out that it's not only more expensive but, on top of that, smaller than it was before. It's a bloody rip-off.

Secondly, there's a squeeze on suppliers. The Food and Grocery Code of Conduct is an important weapon in our fight against the squeeze. This code was once voluntary, but this government has made it mandatory. What we need now is better enforcement. This code is a game changer for suppliers who have been bullied by supermarkets for far too long. By forcing this code, we can ensure that suppliers are treated fairly and that they can negotiate with the big supermarkets for a more equal position. But the big supermarkets have such a stranglehold on the industry that, for many consumers, there isn't any local alternative to Coles or Woolworths. As a supplier, if you ditch the big supermarkets, there might be no-one else to sell your product to. We're revitalising the National Competition Policy to address this. A competitive market is the backbone of a healthy economy. By encouraging competition, we stimulate innovation, improve efficiency and ultimately provide consumers with more choices at a lower price and provide suppliers with more retailers to work with.

Australians are sick and tired of the misconduct of the big supermarkets. They're sick of getting ripped off. Supermarket misconduct is destroying small-business suppliers and adding to the cost of living. To combat this, we are providing $30 million of additional funding to the ACCC to crack down on this rort. We're backing the ACCC to more effectively monitor, investigate and penalise, ensuring the big supermarkets are held accountable for their actions. In addition, we are funding the consumer organisation CHOICE, over three years, to report on supermarket prices across Australia. Access to reliable information about pricing empowers Aussies to make an informed decision, creating a market where fair pricing is rewarded and unethical practices are exposed. The government's No. 1 priority is tackling the cost-of-living pressures facing hardworking Aussies all around Australia. Part of this is ensuring that people are paying a fair price at the check-out and that Australian producers are getting a fair price for their work.

This motion embodies our commitment to fairness, transparency and wellbeing for all Australians. We are addressing this immediate need to lower supermarket prices while laying the groundwork for a more equitable and competitive economy for the long term. We are standing up to the big supermarkets. Enough is enough. We will stop this supermarket squeeze. To Coles and Woolies, I plead: look after your customers, stop screwing over your suppliers and do the right thing, as good Aussies want you do. Please look after us.

Bob Katter (Kennedy, Katter's Australian Party) Share this | Link to this | Hansard source

Woolworths and Coles had 51 per cent of the market in 1991. By the year 2000, 10 years later, they had 70 per cent of the market. It was 68 per cent if you listen to the government and 72 per cent if you listen to ANOP's world grocery figures. So it was definitely 70 per cent. It went from 51 per cent to 70 per cent. No-one would deny that their market share has gone up from that 70 per cent.

When they did the report on Woolworths and Coles—it was the 14th report on Woolworths and Coles. They do one every year, on average. There have been 15 reports on Woolworths and Coles in 15 years, but during the latest one, two blokes got dressed up in pig suits, and it terrified them! Within three or four hours, 403 items in Woolworths had been pulled down, and, that night, the CEO was sacked. Every political party in this place—all seven of them—is moving legislation because two blokes got dressed up in a pig suit. It's a pity that we didn't do it sooner.

I'm sick of bringing fruit in here all the time and giving the prices, but it just so happened that we had an avocado in our office, so I picked up the avocado. The farm gate price is $3.The supermarket price is $8.50. That's nearly 300 per cent higher. I've spoken about potatoes many times in this place. The farmer gets 99c, and they're $3.90 at Woolworths. How much longer do you accept this? No country on Earth—England is actually the worst, and the big six have only 36 per cent of the market. Here, the big two most certainly have 80 per cent—and I'd say it's closer now to 90 per cent—of the market. Remember ,the market they don't have are tiny little towns. They still make up about 10 per cent of Australia's population, but no one would put a supermarket there, so they're not interested. But how much longer can this go on for?

The week after the pig stunt, seven political parties said they were moving legislation. Here comes the legislation again. It doesn't reduce their market share. The legislation from the honourable member from Hobart and me reduces their market share by law over five years to 20 per cent of the market. At present, they have over 40 per cent each. That would be 20 per cent each. Foreign corporations have only five per cent. Aldi can return themselves to Europe, where they came from, as far as I'm concerned. But that's the legislation. There's no easy way to do this. You either do it or you just keep fooling around and make the people more and more angry with you, because they know all you're doing is politics. You're in big trouble. The pig suit's got you in big trouble. All of Australia is screaming for your throat, so what you do is run along. You've already had your 15th inquiry in 15 years. They got a bit scared, so they came out a bit brutal. The inquiry was as well, which was a bit different for an inquiry.

As Winston Churchill said, 'If you absolutely won't and must not do it, then, of course, you must have an inquiry.' The wider the terms of reference, of course, the less likely it is to hit any target. That's what we're watching here once again. I applaud the government for putting a bit of a scare up them, but you will not do the thing that is required to be done. I don't know about other people, but I used to take 60 bucks down to the supermarket when my wife was away and I was fending for myself. Now I take 160 bucks down. I just can't believe it. Even the statistics would indicate the horrific markup that exists in Australia. They are not showing profits, I might add. The shareholders are not getting a benefit from this, because the profits are going towards maintaining a monopoly of two in the marketplace. That is where the profits are going. Of course, the corporates are paying themselves $13 million a year. (Time expired)

Cassandra Fernando (Holt, Australian Labor Party) Share this | Link to this | Hansard source

The cost of living is the No. 1 concern in my community. Many are struggling to afford everyday essentials. As their representatives, we have a duty to protect them from unfair business practices. While global events such as COVID-19 and the conflict in Ukraine have disrupted supply chains and pushed up prices, some companies have exploited these circumstances to boost their profits at the expense of Australian families. Our government is taking action to address these practices. We've launched one of the biggest crackdowns on supermarkets in history, focusing on transparency, accountability and fair pricing. Our step was to launch an inquiry into price gouging by supermarkets and to provide price comparisons across Coles, Woolworths and Aldi. These three retailers control 75 per cent of the market, yet the code regulating their conduct with suppliers has been voluntary and lacked real penalties. Under Labor, this will change. We are making the code mandatory for supermarkets with revenue exceeding $5 billion. By introducing enforceable rules and meaningful penalties, we are ensuring farmers and families get a fair go.

Our government is also tackling misleading practices head on. The government is taking Woolworths and Coles to court for fake discounts. This is where they have been accused of inflating prices, only to apply a 'discount' sticker falsely advertising deals while charging more than the original price. We are also addressing shrinkflation, where companies reduce product sizes but keep prices at the same level. If you think your packets of chips or boxes of cereal have been getting smaller, you are probably right.

The Prime Minister, Anthony Albanese, said:

We don't want to see ordinary Australians, families and pensioners being taken for a ride by the supermarkets, and we're taking steps to make sure they get a fair go at the checkout.

To back this up, we've committed $30 million in additional funding to the ACCC to enforce these measures. This is what happens when a government properly equips and supports its regulator to do their job. Under the Liberals, regulators were weakened and the big businesses were left unchecked. Labor are reversing this trend by strengthening our consumer regulator to ensure fairness at the checkout.

We are also addressing hidden fees on digital payments. While card payments are now commonplace, many Australians have been hit with sneaky charges. The Albanese government is preparing to ban excessive debit card surcharges pending advice from the Reserve Bank of Australia. This reform will put more money back in Australians' pockets while helping small businesses compete fairly against larger retailers, who often use their size to waive these fees.

I always say that cash is king. By 2026, we will require businesses selling essential goods, such as groceries, medicines and fuel, to accept cash. Like 1.5 million Australians, I still use cash for more than 80 per cent of my transactions. We are doing this to ensure Australians have access to necessities, even in situations when digital systems fail. In a world more and more reliant on computers, we cannot afford to let bad software updates disrupt people's ability to access essential goods. Our actions our clear. We are standing up for Australians at the checkout and ensuring they are not taken advantage of by big corporations. By enforcing stronger regulations and fairer codes, we are setting a new standard—one that protects all Australians and holds businesses accountable. These reforms send a strong message: we will not stand by while families struggle and corporations profit unfairly.

Aaron Violi (Casey, Liberal Party) Share this | Link to this | Hansard source

As someone who spent over 10 years working in the grocery industry, in fast-moving consumer goods, before coming to this place, one of many things that I'm passionate about is making sure that the supermarkets look after their suppliers and the Australian people.

But let us be absolutely clear. This code of conduct will not reduce prices at the supermarket at all. This code of conduct is about ensuring that Woolworths and Coles treat their suppliers and farmers with the respect they deserve given the market size that they have. That is an absolutely crucial and important endeavour. But for the government to wrap that up as a cost-of-living measure to reduce prices shows two things: they're either misleading the Australian people, or they're ignorant and they don't understand how the supermarket and grocery chains and the mandatory code actually work. That's a question that the Prime Minister should answer, because the mandatory code will not bring prices down.

When I look at this motion from the member for Hawke, I must say that it does bring out the best in the hypocrisy of the Albanese Labor government. I want to go to point (2). It say:

… notes the Government believes that alleged misconduct in the supermarket sector is unfair, unacceptable, and it makes cost of living pressures worse for Australians …

They are prepared, as a government, to put a motion in this House about conduct that is before the courts at the moment with the ACCC. They're prepared to talk about that in a motion. But, whenever a government minister—whether it's the Prime Minister, the Treasurer or others in this government—is asked about Cbus and its disgraceful conduct in not paying out insurance payments and death payments for people who have died, to their loved ones, including members of my community, they say, 'No, we can't talk about that, because it is before ASIC.' This is the hypocrisy of the Albanese Labor government and the Treasurer. He will palm off innocent Australians who won't get the money that they are entitled to because a loved one has died. And the reason he doesn't want to talk about it is that his mentor, the former treasurer of this country and now National President of the ALP, is the Cbus chair. Shame on the ALP and the Australian government.

They are not prepared to stand up for the Australian people, for the members of Cbus who have lost loved ones and can't get their money. They say they can't talk about that because it is before ASIC. Yet, at the very same time, they are prepared to bring a motion to the House to discuss the allegations against Woolworths and Coles that are currently before the ACCC. Woolworths and Coles are literally testifying to the ACCC. So we can talk about that in a motion in this House, but they won't answer questions about the misconduct of Cbus, the alleged misconduct of the National President of the ALP—talk about the hypocrisy of the Albanese Labor government.

They will say one thing in here and they will spin a line, but they won't stand up for the Australian people when it involves their friends.

Mr Katter interjecting—

So let's talk about Woolworths and Coles. I'll get on to Woolworths and Coles—very happy to. That's enough time, member for Kennedy; I've spoken about it a lot.

I want to talk about the Melbourne wholesale market. The Victorian Labor government are increasing the rents by six to 7.6 per cent per year at the fresh fruit markets in Epping in Victoria. This decision is going to drive prices up. It is going to cause farmers to suffer and have to pay more, and it's actually going to send more market share to Woolworths and Coles, because Woolworths and Coles do not need to go to the markets to buy their fruit and vegetables. Hospitality venues do. Independent supermarkets do. Independent fruit and grocery stores in my electorate and across the country rely on the Melbourne wholesale market to get their products and be competitive at a price level against Woolworths and Coles.

The Victorian Labor government, with not a word from the Albanese Labor government, are increasing prices by over six to seven per cent for the next decade. It is going to increase the market share of Woolworths and Coles. It is going to drive the price of fruit and vegetables up for Australian people. It is another example of Labor at a federal level and a state level moving motions and talking spin but not actually solving the challenges of the Australian people.

Bridget Archer (Bass, Liberal Party) Share this | Link to this | Hansard source

The time allotted for this debate has expired. The debate is adjourned, and the resumption of the debate will be made an order of the day for the next sitting.